Forecast Period | 2026-2030 |
Market Size (2024) | 1.23 Million Tonnes |
CAGR (2025-2030) | 6.20% |
Fastest Growing Segment | Packaging |
Largest Market | West India |
Market Size (2030) | 1.74 Million Tonnes |
Market Overview
India PET Resins Market was valued at 1.23 Million Tonnes by 2024 and is expected to reach 1.74 Million Tonnes by 2030 with a CAGR of 6.20% during the forecast period. PET, also known as
Polyethylene Terephthalate, is a thermoplastic polymer resin that belongs to
the polyester family. In India, PET has emerged as the top choice in the
packaging sector due to its exceptional rigidity, eco-friendly attributes, and
recyclable nature. The demand for PET in the packaging of food and beverages
has seen a significant rise, especially after the sudden outbreak of the
Coronavirus in the final quarter of FY20. This surge in demand can be
attributed to the increasing awareness of hygiene, leading to a greater
procurement of disposable and packaged items in order to minimize the risk of
infection. Furthermore, in the rapidly expanding Indian pharmaceutical sector,
PET bottles have gained preference over aluminum and glass packaging due to
their high-quality standards and safety measures. This trend is expected to
further boost the demand for PET in the forecast period.
Given the projected robust expansion of
the healthcare and pharmaceutical sectors, driven by the increasing need for
medical equipment and medications post-pandemic, the demand for PET bottles for
medical packaging is anticipated to witness an incredible surge in the coming
years.
In India, the manufacturing of
Polyethylene Terephthalate is dominated by Reliance Industries, followed by
three other companies. As a result, the majority of the PET demand in India is
catered to by domestic production. However, cheap imports from other countries
have caused a significant impact on the Indian production in recent years,
resulting in abrupt material injury. Nevertheless, the immense production
capacity of PET in the country is also sufficient to meet the export
requirements from countries such as Algeria, Bangladesh, Egypt, and others. The
sudden spike in demand for PET from the food and beverages as well as
healthcare industries is anticipated to compel manufacturers to operate at over
60 percent efficiency in order to meet the domestic as well as international
demand more effectively.
Key Market Drivers
Growing Demand of PET Resins
in Automotive Industry
PET
resins, also known as polyethylene terephthalate resins, are a type of
versatile thermoplastic polymer that possesses a wide range of desirable
properties. These properties include exceptional strength, durability, and
resistance to wear and tear. It is these attributes that make PET resins highly
sought after for various applications within the automotive industry.
One
of the key areas where PET resins find extensive use is in the production of
auto parts. These resins are utilized in the manufacturing of crucial
components like bumpers, interior panels, and under-the-bonnet parts. Their
exceptional strength and durability make them an ideal choice for these
applications. Additionally, PET resins also play a pivotal role in creating
lightweight and fuel-efficient vehicles.
With
the global emphasis on reducing carbon emissions and creating sustainable transportation
solutions, the automotive industry is actively pursuing the development of
lightweight vehicles. By utilizing PET resins, automakers are able to reduce
the weight of vehicles without compromising on safety or performance. This
reduction in weight translates to lower fuel consumption and a reduced carbon
footprint.
The
significance of PET resins in the automotive industry cannot be overstated. As
the industry continues its commitment to sustainability, the demand for
lightweight materials like PET resins is expected to witness a significant
increase. This growing demand is anticipated to drive the overall growth and
expansion of the PET resin market in the coming years.
In
India, the automotive industry has been experiencing remarkable growth, positioning
the country as one of the largest car markets in the world. This upward
trajectory is contributing to the rising demand for PET resins, as the
production of more vehicles necessitates a greater need for the materials used
in their manufacturing processes.
Furthermore,
the Indian government has taken proactive measures to promote the growth of the
automotive industry, such as the Automotive Mission Plan 2016-2026. These
initiatives are expected to further stimulate the demand for PET resins, resulting
in a positive impact on the market.
Growing Demand of PET Resins in
Packaging Industry
PET resin's intrinsic properties have rendered it an indispensable component in modern packaging solutions. Its exceptional clarity, coupled with its inherent strength and durability, has made it the material of choice for a vast array of products. From the crystal-clear allure of beverage bottles to the protective casing for personal care items, PET's adaptability is unparalleled. Furthermore, its lightweight characteristic offers significant advantages in terms of transportation and logistics, contributing to reduced carbon footprints.
The Indian food and beverage industry has experienced phenomenal growth, driven by rising disposable incomes, urbanization, and changing consumer preferences. PET's role in this expansion has been pivotal. The material's ability to preserve product freshness, coupled with its aesthetic appeal, has made it the preferred choice for packaging an extensive range of products, from carbonated beverages and juices to dairy products and edible oils.
The rapid growth of e-commerce in India has created a surge in demand for robust and protective packaging materials. PET's impact resistance and ability to withstand the rigors of transportation have made it a preferred option for online retailers. Moreover, the increasing focus on sustainable packaging solutions has led to a preference for recyclable materials like PET.
The Indian pharmaceutical industry has witnessed significant growth, driven by both domestic and international demand. PET's barrier properties and inert nature make it an ideal material for packaging pharmaceuticals, ensuring product integrity and safety. Additionally, the convenience and portability offered by PET packaging have contributed to its widespread adoption in this sector.
The Indian Standards Bureau (BIS) has initiated a public consultation process for a revised standard governing polyethylene terephthalate (PET) bottles used in edible oil packaging. PET, a widely used plastic resin for food contact materials (FCMs), is the subject of this regulatory update. India's FCM regulatory framework is anchored in the Food Safety and Standards Act of 2006 and its subsequent regulations, including those pertaining to labeling, display, and packaging. The government also leverages BIS standards to address specific materials in direct contact with food.
India has implemented anti-dumping duties on bottle-grade polyethylene terephthalate (PET) resin imported from China. This protective measure aims to safeguard the domestic industry from harm caused by unfairly priced imports. PET resin is a critical component in the manufacturing of bottles and jars used for packaging various products, including mineral water, carbonated beverages, and pharmaceuticals. Following a year-long investigation, the Directorate General of Trade Remedies (DGTR) recommended anti-dumping duties ranging from USD 60.92 to USD 200.66 per ton, depending on product quality. The duties were imposed to counteract the negative impact of the dumped imports on the domestic PET resin industry.
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Key Market Challenges
Volatility in Prices of Raw
Materials
The
Polyethylene Terephthalate (PET) resin market in India has experienced
significant growth in recent years, driven by increasing demand from various
industries such as packaging and automotive. This growth can be attributed to
the excellent properties of PET resins, including their durability,
transparency, and lightweight nature, which make them suitable for a wide range
of applications.
However,
like any other industry, the PET resin market faces its unique set of
challenges. One of the most pressing issues is the volatility in the prices of
raw materials. PET resins are derived from petroleum-based products, mainly
Purified Terephthalic Acid (PTA) and Monoethylene Glycol (MEG). The prices of
these raw materials are heavily dependent on global crude oil prices, which are
known to be highly volatile.
When
crude oil prices rise, the cost of producing PET resins also increases. This
adds significant pressure on manufacturers to either absorb the extra costs,
thereby reducing their profit margins, or pass them onto consumers. However,
passing on the increased costs to consumers could potentially result in
decreased demand for PET resin products, as price-sensitive customers may turn
to alternative materials.
To
navigate these challenges, PET resin manufacturers in India are adopting
various strategies. Some are investing in research and development to find
alternative raw materials or develop more efficient production processes.
Others are exploring long-term contracts with suppliers to stabilize the prices
of raw materials. Additionally, manufacturers are also focusing on improving
their operational efficiency to mitigate the impact of volatile raw material
prices on their overall costs.
Despite
the challenges, the PET resin market in India continues to thrive due to its
strong demand and the adaptability of manufacturers to changing market
conditions. With the increasing emphasis on sustainability and the growing
demand for eco-friendly packaging solutions, PET resins are expected to play a
vital role in the future of the packaging industry.
Key Market Trends
Growing Preference for
Hot-Fill PET
India's
Polyethylene Terephthalate (PET) resin market has been witnessing a significant
growth trajectory, largely attributed to its extensive applications across
diverse industries. However, the market is also evolving in response to
emerging trends and consumer preferences. One such trend making waves in the
industry is the growing predilection for hot-fill PET.
Hot-fill
PET, a type of PET packaging that can withstand high temperatures during the
filling process, has been gaining popularity rapidly. This technology allows
food and beverage products to have an extended shelf life without the need for
refrigeration or preservatives, making it a preferred choice among
manufacturers and consumers alike.
The
increasing preference for hot-fill PET is making a noticeable impact on India's
PET resin market. According to a recent market analysis, PET has become the
primary preference in the packaging sector in India due to its rigidity,
eco-friendly attributes, and recyclable nature. Moreover, the unique properties
of hot-fill PET, such as its ability to withstand high temperatures, are
driving its adoption in the market.
However,
it is important to note that the production process of hot-fill PET requires
specialized machinery and higher energy consumption compared to regular PET.
This means that as more manufacturers move towards hot-fill PET, the demand for
standard PET resins could potentially decrease, causing a shift in the market
dynamics.
Segmental Insights
Type Insights
Based
on Type, Bottled Beverages have emerged as the dominating segment in India PET Resins Market in 2024. Sustainability is not only
a key driver but also a crucial factor shaping the PET resin market. PET, known
for its recyclability, has gained recognition as an eco-friendly material. With
consumers becoming increasingly environmentally conscious, the demand for
sustainable packaging solutions like PET bottles is witnessing a significant
surge, particularly in the beverage industry.
Interestingly,
the expansion of the food and beverage industry in India has emerged as another
influential element propelling the growth of the PET resin market. As this
industry continues to flourish, the demand for PET resins has soared, as they
are extensively utilized for manufacturing bottles catering to a wide range of
liquids, including water, carbonated drinks, oils, and more.
The
appeal of PET bottles lies in their exceptional versatility, lightweight
nature, and shatter-resistant properties, making them the perfect choice for
packaging various types of beverages. Moreover, these bottles offer excellent
chemical resistance, ensuring that the integrity and taste of the beverages are
impeccably maintained throughout their shelf life.
Furthermore,
the rising popularity of single-serve beverages in the ready-to-drink (RTD)
market has emerged as another prominent trend driving the growth of the PET
resin market. PET bottles, due to their convenience and portability, are highly
preferred by consumers for on-the-go consumption, further boosting their demand
and market presence.
Application Insights
Based on Application, Packaging have emerged as the fastest growing segment in the India PET Resins Market during the forecast
period. PET (Polyethylene Terephthalate) is an incredibly versatile material
that offers a wide range of molding possibilities, allowing it to be shaped
into various forms and sizes. This adaptability makes it an ideal choice for a
diverse array of packaging applications, catering to different industries and
products. Furthermore, PET is renowned for its exceptional strength and
durability, ensuring the utmost safety and integrity of the packaged goods.
In
India, the packaging sector has witnessed remarkable growth, largely fueled by
the thriving food and beverage industry. This industry's robust expansion has
significantly contributed to the dominance of PET resin packaging in the
market. PET is extensively utilized in packaging various beverages, including
water, carbonated drinks, and juices, primarily due to its exceptional barrier
properties and chemical resistance, which safeguard the quality and freshness
of the contents.
The undisputed predominance of packaging in the PET resin market in
India can be attributed to the sustainable nature of PET, its remarkable
versatility, exceptional durability, and the continuous growth of the food and
beverage industry. As these trends persist, packaging's dominance in the PET
resin market is expected to remain unchallenged, securing its position as a key
player in the industry.
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Regional Insights
Based on Region, West
India have emerged as the dominating region in the India PET Resins Market in 2024,
holding the largest market share in terms of value. Firstly, West India,
comprising states like Maharashtra, Gujarat, and Goa, is home to some of the
major players in the PET resin industry. For instance, Reliance Industries
Limited (RIL), one of the largest contributors to the PET resin market, is
headquartered in Mumbai, Maharashtra. The strategic presence of such
significant players in this region not only bolsters its market dominance but
also fosters a collaborative ecosystem for innovation and growth in the PET
resin sector.
West
India boasts advanced infrastructure and well-developed industrial areas,
making it an ideal hub for large-scale manufacturing units. The seamless
connectivity and availability of resources further attract industries to this
region, contributing to its continued dominance in the PET resin market. The
well-established transport network, including ports like Mundra and Pipavav,
facilitates efficient import and export of raw materials and finished products,
further strengthening the region's position in the market.
Although
not located in West India, the Bongaigaon Refinery in Assam plays a vital role
in the Indian PET market. This state-of-the-art refinery is engaged in the
production of PET from captive DMT and purchased ethylene glycol for the
manufacturing of polyester fibers. The Bongaigaon Refinery's significant
production capacity and high-quality PET resin contribute substantially to the
overall PET resin market in India.
Finally,
the high demand for PET resins in West India, particularly from the packaging
sector, is another key factor driving the region's domination. With the
ever-growing food and beverage industry in this region, there is an increasing
need for sustainable and recyclable packaging solutions. PET resin, known for
its excellent properties in terms of strength, transparency, and recyclability,
meets this demand perfectly. The packaging sector's preference for PET resin
further propels the region's growth trajectory in the PET resin market.
Recent Developments
- In a significant sustainability milestone, Coca-Cola India introduced the nation's first 100% recycled PET (rPET) water bottle in August 2023. Produced by Srichakra Polyplast utilizing Starlinger's advanced PET bottle-to-bottle recycling technology, the food-grade rPET material is incorporated into Kinley water bottles. Srichakra Polyplast's Hyderabad facility houses India's inaugural Starlinger recycling line, equipped to process post-consumer PET bottles and produce food-safe rPET pellets. This achievement underscores the company's commitment to circular economy principles and sustainable packaging solutions. The successful implementation of this technology in India marks a pivotal step towards reducing plastic waste and promoting environmentally responsible practices within the beverage industry.
- Indo Rama Synthetics (India) Ltd, a Mumbai-listed company, initiated commercial operations at its 230,000-ton-per-annum polyethylene terephthalate (PET) plant in western Maharashtra during June 2023. The facility, located in Butibori, Nagpur district, is managed by Indorama Yarns Pvt Ltd, a wholly-owned subsidiary. The company announced the commencement of plant operations on June 3rd in a regulatory filing to the Bombay Stock Exchange (BSE). A major polyester producer in India, Indo Rama Synthetics boasts an integrated production site in Butibori and is a 32% subsidiary of Thailand's Indorama Ventures Ltd.
- In March 2024, TOPPAN Inc., a subsidiary of TOPPAN Holdings Inc. under the TOPPAN Group, collaborated with India-based TOPPAN Speciality Films Private Limited (TSF) to develop GL-SP, a BOPP (biaxially oriented polypropylene) substrate-based barrier film. This innovative product signifies a significant addition to the TOPPAN Group's GL BARRIER series, a globally renowned range of transparent vapor-deposited barrier films. Production and sales of GL-SP are set to commence shortly, targeting dry product packaging markets in the Americas, Europe, India, and the ASEAN region. This launch aligns with the growing demand for sustainable solutions in the packaging industry.
Key Market Players
- Reliance Industries Limited
- JBF Industries Limited
- Indorama Ventures Public Company Limited
- BASF SE
- Toray Industries (India) Private Limited
- Eastman Chemical India Pvt. Ltd.
|
By Type
|
By
Application
|
By
Region
|
- Bottled
Beverages
- Films
& Sheets
- CSD
- Food
- Others
|
- Transportation
- Automotive
- Electrical
& Electronics
- Household
Appliances
- Packaging
- Textile
|
- North
India
- East
India
- West
India
- South
India
|
Report
Scope:In
this report, the India PET Resins Market has been segmented into the following
categories, in addition to the industry trends which have also been detailed
below:
- India PET Resins Market, By Type:
o Bottled Beverages
o Films & Sheets
o CSD
o Food
o Others
- India PET Resins Market, By Application:
o Transportation
o Automotive
o Electrical & Electronics
o Household Appliances
o Packaging
o Textile
- India PET Resins Market, By Region:
o North India
o East India
o West India
o South India
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies present in the India PET Resins Market.
Available
Customizations:
India
PET Resins Market report with the given market data, TechSci Research offers
customizations according to a company's specific needs. The following
customization options are available for the report:
Company
Information
- Detailed analysis and profiling of
additional market players (up to five).
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PET Resins Market is an upcoming report to be released soon. If you wish an
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